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LOCAL GOVERNMENT(50 ILCS 25/) Local Government Air Rights Act.

50 ILCS 25/0.01

(50 ILCS 25/0.01)(from Ch. 85, par. 1060)Sec. 0.01. Short title. This Act may be cited as the
Local Government Air Rights Act.(Source: P.A. 86-1324.)

50 ILCS 25/1

(50 ILCS 25/1)(from Ch. 85, par. 1061)Sec. 1. It is hereby found and declared that public agencies of the State, with
regard to certain existing and proposed public improvements and
developments, are not able to make the most effective utilization of the
land acquired or to be acquired for such public improvements and
developments because of the nature of such public improvements and
developments. It is further found and declared that the scarcity and high
cost of available land in many areas of the State where public improvements
and developments are needed, coupled with the inability to make a more
effective utilization of the land, from both a planning and economic
viewpoint, because of the nature of some public improvements and
developments, render it necessary and desirable that, where feasible, air
rights over existing and proposed public improvements be sold or leased and
that such public improvements and developments be constructed or developed
in combination with other compatible desirable and lawful uses constructed
on such air rights sold or leased to private interests, thereby reducing
the cost of such public improvements and developments; making a more
effective utilization of land from both a planning and economic viewpoint
and placing the non-public portion of any such improvement back on the tax
rolls.(Source: P.A. 76-1161.)

50 ILCS 25/2

(50 ILCS 25/2)(from Ch. 85, par. 1062)Sec. 2. The following terms, wherever used or referred to in this Act, shall
have the following respective meanings, unless in any case a different
meaning clearly appears from the context.(a) "Public Agency" or "public agency of the State" means the various
counties, townships, cities, villages and incorporated towns, school
districts, sanitary districts, boards of education, park districts, housing
authorities, public building commissions, or any other municipal
corporation or governmental agencies of the State, now or hereafter
created, whether herein specifically enumerated or not.(b) "Governing body" shall include a county board, city council, board
of trustees, board of managers, board of commissioners, or any other body
or board, by whatever name it may be known or designated, charged by law
with the governing of a public agency.(c) "Combined Occupancy Structure" means any improvement on real
property or any interests therein or thereto, including fee interests,
leaseholds, easements, space rights or air rights, either containing a
public improvement in combination with other compatible desirable and
lawful non-public use or uses, or a compatible desirable and lawful
non-public use or uses constructed in whole or in part over an existing
public improvement, which Combined Occupancy Structure is designed and
intended to increase, from both a planning and economic viewpoint, the
efficient utilization of available land areas.(d) "Developer" means any private individual, partnership, joint
venture, trust, corporation or other legal entity or any combination
thereof approved by the governing body of a public agency as being
qualified and eligible to enter into one or more agreements with a public
agency providing for the purchase or lease of air rights and the
construction of any combined occupancy structures, or portion thereof,
including facilities and appurtenances thereto; which agreements shall be
subject to the approval of the governing body of the public agency.(e) "Real Property" means lands, waters, rights in lands or waters
structures, franchises and interests in land, including air space rights,
and any and all other things and rights usually included within the same
term, and includes also any and all interests in such property less than
full title, such as easements, perpetual, permanent or temporary,
rights-of-way, uses, leases, licenses and any and all other incorporeal
hereditaments in every estate, interest or right, legal or equitable.(f) "Public portion" or "public portion of a combined occupancy
structure" means that portion of a combined occupancy structure designed,
constructed, and improved for sole and exclusive use and occupancy by a
public agency for public use or public purpose, including facilities and
appurtenances thereto.(g) "Fair Use Value" shall mean the fair cash market value of air
rights, sold or leased, over existing or proposed public improvements or
developments when employed for use contemplated for the non-public portion
of a combined occupancy structure.(Source: P.A. 76-1161.)

50 ILCS 25/3

(50 ILCS 25/3)(from Ch. 85, par. 1063)Sec. 3. Whenever the nature of any existing or proposed public improvement or
development does not, from both a planning and economic viewpoint,
permit or lend itself to the full or efficient utilization of the land
acquired or which is necessary to be acquired for the public improvement
or development, the governing body of any public agency may, subject to
such restriction as may be imposed by the governing body of the public
agency for the development of a compatible, desirable and lawful
combined occupancy structure not inconsistent with local laws, sell or
lease the air rights over the existing or proposed public improvement or
development to a developer on which to construct a combined occupancy
structure. The non-public portion of any combined occupancy structure
must be constructed in whole or in part over the existing or proposed
public improvement. The sale or lease of such air rights by a public
agency may be made subject to such restrictions relating to the time and
condition of the vesting of title in such air rights as the governing
body of the public agency may impose. Any developer who purchases or
leases air rights from a public agency over an existing public
improvement or development under the provisions of this Act must, as a
condition of such purchase or lease, agree with the public agency to
construct the non-public portion of a combined occupancy structure in
accordance with the plan of development prepared by the developer and
approved by the public agency and such agreement may be made a covenant
running with the land and by ordinance or resolution of the governing
body of the public agency shall be made a covenant running with the
land. Any developer who purchases or leases air rights from a public
agency over a proposed public improvement or development must, as a
condition of such purchase or lease, agree with the public agency to
construct or cause to be constructed both the public and non-public
portions of a combined occupancy structure in accordance with: (1) the
plan of development for the public portion of the combined occupancy
structure prepared by the public agency and in accordance with the plan
of development for the non-public portion of the combined occupancy
structure prepared by the developer and approved by the public agency or
(2) as the case may be, in accordance with the plan of development for
both the public and non-public portions of the combined occupancy
structure prepared by the developer and approved by the public agency,
and such agreement may be made a covenant running with the land and by
ordinance or resolution of the governing body of the public agency shall
be made a covenant running with the land. The public agency shall by
public notice by publication once each week for 2 consecutive weeks in a
newspaper having general circulation in the territorial limits of the
public agency prior to the execution of any contract to sell or lease
air rights and prior to the delivery of any instrument of conveyance
with respect thereto, invite proposals from and make available all
pertinent information to developers interested in undertaking to
purchase or lease air rights and to construct or cause to be constructed
a combined occupancy structure, or any portion thereof. Such notice
shall contain a description of the area of the existing or proposed
public improvement or development; the details of the existing public
improvement, or the details of the plan of development of the public
portion of a combined occupancy structure if the public agency has
prepared a plan of development of the public portion thereof; and, if
the public agency has not prepared a plan of development for the public
portion of a combined occupancy structure, then the detailed
requirements of the needs to be met for the public portion of a combined
occupancy structure sufficient to enable a developer to submit a plan of
development for a combined occupancy structure including both the public
and non-public portion of a combined occupancy structure, all of which
the developer shall undertake in writing to carry out together with such
further undertakings by the developer as the public agency may deem
necessary to obligate the developer, his successors and assigns (1) to
use the non-public portion of a combined occupancy structure for the
purposes designated in the plan of development for a combined occupancy
structure, which shall be a compatible, desirable and lawful non-public
use complying with local law, (2) to commence and complete or cause to
be commenced and completed the construction of the combined occupancy
structure, or portion thereof, within the periods of time which the
public agency fixes as reasonable and (3) to comply with such other
conditions as are necessary to carry out the purposes of this Act. The
public agency may negotiate with any developer for proposals for the
sale and purchase or lease of air rights and shall consider all
proposals submitted to it for the construction of a combined occupancy
structure, or any portion thereof, and the financial and legal ability
of the developers making such proposals to carry them out. The public
agency at a public meeting, notice of which shall have been published in
a newspaper of general circulation within the territorial limits of the
public agency at least 15 but not more than 30 days prior to such
meeting; may accept such proposal as it deems to be in the public
interest and in furtherance of the purposes of this Act. The
construction of the public portion of any combined occupancy structure
shall be let upon open competitive bidding to the lowest responsible
bidder. The sale or lease of air rights in accordance with the
provisions of this shall be made at not less than fair use value.
Periodic payments may be made by the public agency to the lowest
responsible bidder selected by the public agency to construct the public
portion of a combined occupancy structure as the work progresses. The
developer who is selected to construct or to cause to be constructed a
combined occupancy structure, or any portion thereof, shall furnish to
or cause to be furnished to the public agency a performance and payment
bond to serve as security for the faithful performance of the contract
for the construction of the combined occupancy structure, or any portion
thereof, and for the payment of all persons, firms or corporations to
whom the developer or contractor may become legally indebted for labor,
materials, facilities or services of any nature, employed or used by the
developer or contractor in performing the work, such bond to be in such
amount and with such surety as may be approved by the public agency.(Source: P.A. 76-1161.)